FXStreet (Edinburgh) – The research team at BBH shed more detail on the recent devaluation of the Chinese Yuan by the PBoC.
Key Quotes
“Many investors who were already primed to think in currency war terms feared a new front had opened. Yet, outside of some in the media and a few analysts, few took the bait”.
“We note that the IMF and US Treasury welcomed the move, provided that it was implemented as the declaratory policy implied”.
“Yesterday, Dudley, President of the NY Fed recognized that given macro situation in China, it would “not be inappropriate” for the yuan to weaken”.
“Moreover the fact that the South Korean and Philippines central banks, both of which had meetings today, did not respond to the yuan’s depreciation, also suggests the currency war meme has once again been exaggerated”.
(Market News Provided by FXstreet)